Is the housing market at an inflection point? Tina Tamboer, Senior Housing Analyst at The Cromford Report says there has been a significant shift, specifically in supply and demand creating a very interesting dynamic right now in the greater Phoenix area market. Are things becoming more favorable to buyers? What about investors? Is this seller’s market finally over?
Phoenix is a boom and bust type of market nowadays, but today is different from the last housing market crash. Whatever your residual anxiety over what you went through during that period of 2005, all the way to 2008, ‘09 and ‘10, you have to put those emotions aside. Emotions are not facts and you have to lean into the numbers to learn what’s happening today.
It’s not all about the interest rate or the payment, but rather where do we expect incomes to go in the future? Where do we expect supply to be in the future? What we have right now is not a correction – what we have is a disruption.
Inflation Downgrades Your Standard of Living
Homebuyers have had to adjust their expectations. They’re still in the game, but they simply have to settle for less house because now they can’t qualify for as much house as they wanted to originally and many renters have had to downgrade their standard of living. Unfortunately, that’s what inflation does. It’s a robber and a thief. It destroys the quality of life, it destroys the standard of living.
According to Tina, what we’re seeing in the housing market is not a correction, but rather a disruption and the next few months are going to be a very telling time. Jason and Tina put the Phoenix housing market under a microscope to see exactly what’s happening with buyers, sellers, listing prices, foreclosures, landlords, rent increases and rate hikes!
Reading the Numbers
Supply is rising and prices are being reduced in the Phoenix area market as there have been a significant number of seller reductions each week in various price ranges.
We are seeing a slowdown and we’re seeing the tables turn a little bit more towards the buyers in the Phoenix area market. We’re not seeing people waving inspections or paying quite as much over listing price as we have the past two years, but that doesn’t mean we’re in a buyer’s market. It does not mean that sale prices won’t continue on an upward trajectory. We’re just seeing sellers getting a little more accommodating and conceding to concessions.
If you rely on the numbers, you’ll see that shifts in supply and demand affect each range of the market differently. Somebody experienced on the higher end of the market is going to be different from somebody who’s experienced on the lower end of the market and you have different players. People on the investment side of the market are having to adjust quickly as well.
Check out the full episodes here!
Is the Seller’s Market Over? The Cromford Report, Tina Tamboer
Housing Market Finally Slowing Down? The Cromford Report, Tina Tamboer
